The U.S. Department of Housing and Urban Development (HUD) has announced a new proposed rule aimed at tightening eligibility verification requirements for residents of HUD-funded housing programs. The proposal would require every member of a household receiving HUD assistance to provide documentation proving U.S. citizenship or eligible immigration status, including in so-called “mixed-status” households.
Secretary Scott Turner said the rule is intended to close long-standing loopholes that have allowed ineligible individuals to remain in federally supported housing without full verification. “For too long, illegals and ineligibles have taken spots in public housing through the mixed-status roommate loophole, while Americans were sidelined on a wait list,” Turner said in a public statement. He added that HUD’s responsibility is to taxpayers and that existing law already prohibits housing assistance from being provided to individuals without eligible status.
For too long, illegals and ineligibles have taken spots in public housing through the “mixed status” roommate loophole, while Americans were forced to wait.
— Scott Turner (@SecretaryTurner) February 20, 2026
That ends today. pic.twitter.com/YoFsvggtVT
Under current regulations, households with both eligible and ineligible members can receive prorated assistance, and some residents are permitted to self-attest to their status or claim a “do not contend” option to avoid providing documentation. HUD officials say those provisions have contributed to incomplete verification and misuse of resources. According to the agency, audits conducted jointly with the Department of Homeland Security identified nearly 200,000 tenants with incomplete or unknown eligibility records. HUD estimates that approximately 24,000 ineligible individuals are benefiting from assistance within roughly 20,000 mixed-status households nationwide.
The proposed rule, formally titled Housing and Community Development Act of 1980: Verification of Eligible Status, would revise HUD’s Section 214 regulations. It would require documentation for all household members regardless of age, eliminate the “do not contend” option, and limit prorated assistance to a temporary period while full verification is completed. The rule would also expand the use of federal verification systems, such as the SAVE program, to confirm immigration status.
HUD officials say the changes could allow up to $218 million in housing assistance to be redirected to eligible families currently on waiting lists. The agency notes that HUD resources currently serve only about one quarter of households that meet income and eligibility requirements, leaving many qualified applicants waiting for assistance.
In announcing the proposal, Turner framed the action as part of a broader effort to ensure that federal housing programs operate strictly within statutory limits. He said the rule would “guarantee that all residents in HUD-funded housing are eligible tenants” and would end what he described as the exploitation of loopholes that have existed for decades.
The proposal follows other administrative actions taken by HUD this year, including updated residency requirements for FHA-backed loans and new audit procedures for public housing authorities. HUD has also entered into a memorandum of understanding with the Department of Homeland Security aimed at improving coordination on eligibility enforcement.
.@SecretaryTurner announced a new proposed rule to require proof of U.S. citizenship or eligible status for every resident in HUD-funded housing, including “mixed status households.”
— Department of Housing and Urban Development (@HUDgov) February 19, 2026
With this proposed rule, HUD will ensure that taxpayer-funded housing benefits only go to… pic.twitter.com/IrWFZa26eJ
The rule has been published as a Notice of Proposed Rulemaking in the Federal Register, meaning it is not yet in effect. Members of the public will be able to submit comments before HUD issues a final rule. The proposal is regulatory in nature and does not require congressional approval, as it is based on existing authority under the Housing and Community Development Act of 1980.
If finalized, the rule would mark the first time HUD requires documented proof of citizenship or eligible status for every resident in assisted housing, rather than relying on partial or self-declared verification. HUD officials say the goal is to ensure that taxpayer-funded housing assistance is reserved for individuals who meet statutory eligibility requirements while improving oversight and consistency across housing programs nationwide.
